How Much You Need To Earn in Every State To Buy a Home

The average American who hopes to become a homeowner might need to put their dreams on hold—unless they look in states where the costs, and their incomes, are lower.

On average, they simply don’t earn enough money to keep up with monthly mortgage payments.

The minimum recommended income to purchase a median-priced home in the U.S. is between 7% and 151% higher than the median household income at the state level, according to the latest data analysis from Realtor.com®.

“Purchasing a median-priced home in today’s market ranges from challenging to downright impossible for median-income households,” says Realtor.com senior economic research analyst Hannah Jones.

Some states are more unaffordable than others, with the gap between the minimum annual salary needed to keep up with the mortgage payments and the median household income running into the six figures.

Illinois was the most affordable market relative to local incomes, according to the most recent available figures from December 2024. The minimum recommended income to buy a median-priced home in the Midwestern state was about 7% higher than the state’s median household income of $80,306. These figures factor in property taxes and insurance and assume a 10% down payment.

“This means that the typical household would be spending more than the recommended 30% of income on housing, but purchasing a home is within the realm of possibility,” says Jones.

Homeowners who spend more than 30% of their gross income on housing are typically considered cost-burdened.

Montana leading in affordability gap

In Montana, the gap between the minimum recommended income to purchase a home and the median household income has opened into a Bighorn Canyon–sized chasm, making the Big Sky Country the most unaffordable state.

In December, the median list price in Montana was $604,500, requiring a minimum income of $178,017. The trouble is that the median household income in the mountain state was just over $70,800, or about 2.5 times less than the minimum required amount.

That means the average household in Montana had to be bringing in more than 151% of the state’s median annual income to afford a typical home. That number takes into account current mortgage rates of around 7%.

For comparison, on the national level, the typical household would need to earn $118,530 per year to buy a median-priced home of  $402,500, which is more than 52% higher than the median household income of around $77,700.

The U.S. Census Bureau defines a household as all the people who live in a housing unit as their primary residence. That includes family members, tenants, or employees. 

Overall, in 36 out of the 50 states, homebuyers need to earn six figures to afford a home.

From Hawaii to West Virginia

House hunters in Hawaii, where the median list price was $800,000 in December—the highest in the U.S.—had to be earning the highest income of $235,588 to be able to afford a residential real estate purchase. That was more than 147% higher than the median household income in the Aloha State.

On the other hand, West Virginia had the lowest median list price of just $249,000 last month, calling for the nation’s lowest minimum required income of $73,327. And still, it was more than 30% higher than the state’s median income of $55,948.

Realtor.com analyzed median monthly mortgage payments in every state to arrive at these findings. The calculation uses median home list prices from December 2024 and a 6.93% mortgage rate for a 30-year fixed loan. It includes estimated property taxes and insurance costs. It also assumes buyers put down 10% and didn’t spend more than 30% of their gross income on their mortgage payments each month.

10 states where buyers need the highest incomes to purchase a home

1. Hawaii

Median home list price: $800,000  

Median household income required to purchase a home: $235,588

2. Massachusetts

Median home list price:$732,450

Median household income required to purchase a home: $215,696

3. California

Median home list price: $715,000

Median household income required to purchase a home: $210,557 

4. New York

Median home list price: $642,500

Median household income required to purchase a home: $189,207 

5. Montana

Median home list price: $604,500

Median household income required to purchase a home: $178,017 

6. Washington

Median home list price: $599,925

Median household income required to purchase a home: $176,669 

7. Utah

Median home list price: $589,990

Median household income required to purchase a home: $173,744 

8. Colorado

Median home list price: $564,950

Median household income required to purchase a home: $166,370 

9. New Hampshire

Median home list price: $562,038

Median household income required to purchase a home: $165,512 

10. Idaho

Median home list price: $559,450

Median household income required to purchase a home: $164,750 

10 states where buyers need the lowest incomes to purchase a home

1. West Virginia

Median home list price: $249,000

Median household income required to purchase a home: $73,327 

2. Ohio

Median home list price: $252,500

Median household income required to purchase a home: $74,358 

3. Michigan

Median home list price: $268,700

Median household income required to purchase a home: $79,128 

4. Louisiana

Median home list price: $274,950

Median household income required to purchase a home: $80,969 

5. Iowa

Median home list price: $278,850

Median household income required to purchase a home: $82,117 

6. Indiana

Median home list price: $279,900

Median household income required to purchase a home: $82,427 

7. Kansas

Median home list price: $283,712

Median household income required to purchase a home: $83,549 

8. Mississippi

Median home list price: $289,450

Median household income required to purchase a home: $85,239 

9. Missouri

Median home list price: $289,900

Median household income required to purchase a home: $85,371 

10. Oklahoma

Median home list price: $290,000

Median household income required to purchase a home: $85,401 

The 50 states and the median household income required to purchase a home

1. Alabama: $94,000
2. Alaska: $122,211
3. Arizona: $140,470
4. Arkansas: $85,695
5. California: $210,557
6. Colorado: $166,370
7. Connecticut: $146,161
8. Delaware: $141,335
9. Florida: $127,343
10. Georgia: $113,495
11. Hawaii: $235,588
12. Idaho: $164,750
13. Illinois: $86,122
14. Indiana: $82,427
15. Iowa: $82,117
16. Kansas: $83,549
17. Kentucky: $88,051
18. Louisiana: $80,969
19. Maine: $129,397
20. Maryland: $117,793
21. Massachusetts: $215,696
22. Michigan: $79,128
23. Minnesota: $110,403
24. Mississippi: $85,239
25. Missouri: $85,371
26. Montana: $178,017
27. Nebraska: $99,831
28. Nevada: $142,369
29. New Hampshire: $165,512
30. New Jersey: $159,744
31. New Mexico: $114,555
32. New York: $189,207
33. North Carolina: $117,573
34. North Dakota: $103,055
35. Ohio: $74,358
36. Oklahoma: $85,401
37. Oregon: $161,967
38. Pennsylvania: $87,168
39. Rhode Island: $147,228
40. South Carolina: $103,070
41. South Dakota: $108,930
42. Tennessee: $124,832
43. Texas: $105,868
44. Utah: $173,744
45. Vermont: $145,770
46. Virginia: $121,461
47. Washington: $176,669
48. West Virginia: $73,327
49. Wisconsin: $107,769
50. Wyoming: $135,463